Home News Stock to Watch: Power Integrations (NASDAQ: POWI)

Stock to Watch: Power Integrations (NASDAQ: POWI)


Power Integrations is part of the semiconductors industry and technology sector. The company CEO is Balu Balakrishnan. Power Integrations Inc designs, develops and markets analog, mixed-signal integrated circuits, and other electronic components and circuitry used in power conversion. The company’s product is used in converting electricity.

Previous Intraday Trading Performance:

The POWI stock showed a previous change of 1.40% with an open at 71.15 and a close of 71.71. It reached an intraday high of 72.05 and a low of 69.80.

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The stock has a market cap of $2.1b with 29.3m shares outstanding, of which the float is 27.9m shares. Trading volume reached 65,171 shares compared to its average volume of 124,129 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Power Integrations shares returned 4.28% and in the past 30 trading days it returned -9.64%. Over three months, it changed 1.57%. In one year it has changed -4.80% and within that year its 52-week high was 81.37 and its 52-week low was 47.35. POWI stock is 51.45% above its 52 Week Low.

Our calculations show a 200 day moving average of 66.37 and a 50 day moving average of 72.87. Currently POWI stock is trading 8.05% above its 200 day moving average.

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The last annual fiscal EPS for the company was reported at 2.32 that ended on 31st of December 2018, which according to the previous close, that is a PE of 30.91. Based on 3 analyst estimates, the consensus EPS for the next quarter is 0.25. The TTM EPS is 2.15, which comes to a TTM PE of 33.35. Historically, the PE high was 88.50 and the PE low was 18.70. If the stock reached its PE low, that would represent a price of 40.21, which is a decrease of -43.93%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/25/2019): 0.25
4thQtr of 2018 (Reported on 02/07/2019): 0.77
3rdQtr of 2018 (Reported on 10/25/2018): 0.59
2ndQtr of 2018 (Reported on 07/26/2018): 0.51
1stQtr of 2018 (Reported on 04/26/2018): 0.46

The dividend per share is currently 0.68, which is a dividend yield of 0.95%. Also, the payout ratio is 31.63%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 43.91, which means it may be overvalued by -63.30%.

Indicators to Watch:

The current calculated beta is 1.19.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 12.39%, return on assets is 10.95%, profit margin is 15.77%, price-to-sales is 5.15 and price-to-book is 3.90.

Company Scores:

All scores are out of six:
 0  :Valuation Score
 3  :Past Performance Score
 6  :Financial Strength Score
 2  :Future Growth Score
 4  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.